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If you haven't heard, the renowned VC firm, Kleiner Perkins, has picked up former US Sec of State Colin Powell as a partner, as reported by the Red Herring. I've always thought persons with experience in foreign diplomacy have a unique talent to bring to venture capital through relationships, understanding, and insight into where the world is heading and what it will take to get there. The Carlyle Group has a history of recruiting Washington heavyweights into their partnership. This undoubtedly has improved their returns and helped them cut better deals and get key people on the phone when needed for their portfolio companies. I guess Kleiner is getting into the game as well. However, from Red Herring's blurb, it appears that what Powell and Kleiner have in common is the sense of "mission" behind investing, rather than merely investing for returns. Powell is noted to have recently personally invested in Revolution, a company focused on revolutionizing the health care system. What does all of this mean? Is it good for venture capital?

For starters, it means that the clubby world of venture capital is getting clubbier. No longer will firms be separated by their quartile returns or big winners, but now by the power and influence of their partners. I guess that the description of VC firms as "adding value" is really turning out to be true. Will this officially start the beginning of the New York Yankee type firms that have bought big name partners onto their rosters? Perhaps this will mark the beginning of the use of venture capital to achieve social or political agendas rather than simply returns. If this is the case, then I welcome Powell and others into the world of venture capital and I hope they use it to make the word a better place. How will return-focused LPs feel about funds that might invest with a social or political agenda versus solely on return? Only time will tell, but I would love to hear what my readers feel about this. Would you invest in a fund that might invest in companies that change the world into a better place but that might not have the best return?